NIPPON KANZAI Holdings Co., Ltd. (9347) AI Stock Analysis

• Market Cap: ¥103.36B
• Dividend Yield: 1.95%
• Average Volume (3M): 105.67K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.35
• Revenue Growth: 11.54%
• EPS Growth: 50.62%
• Country: JP
• Employees: 10,876
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 48.46
• Shares Outstanding: 41,180,305
• 10 Day Avg. Volume: 45,540
• 30 Day Avg. Volume: 105,673
• PEG Ratio: 4.52
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -404.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥3,135.00 ▲(13.55% Upside)

NIPPON KANZAI Holdings Co., Ltd. scores well due to its strong financial performance, particularly in revenue growth and balance sheet strength. Technical analysis presents mixed signals, with potential for recovery. Valuation is fair, providing a balanced investment outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and effective market penetration, supporting long-term business expansion.

Operational Efficiency

Stable margins suggest effective cost management and operational efficiency, enhancing profitability and competitive positioning.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, enabling strategic investments and growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, affecting the company's ability to fund operations and investments without external financing.

Profitability Concerns

Moderate ROE suggests limited profitability enhancement, which may impact shareholder returns and overall financial performance.

Cash Conversion Efficiency

Low cash conversion efficiency can strain liquidity, affecting the company's ability to reinvest in growth and manage financial obligations.

NIPPON KANZAI Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

NIPPON KANZAI Holdings Co.,Ltd. provides building management and operations services in Japan. It offers total management services, including maintenance, equipment, security, and cleaning, safety, cash, energy, liaison, indoor operation, administrative works, building repair works, and other management services. The company also provides engineering services, such as building and seismic diagnosis, repair work, repair plan, assessment system, and engineering report services. In addition, it also offers residential management and operations; environmental facilities management, consisting of water treatment management, sewage disposal, and other public facilities related to living environment; event planning and management; and design and payroll accounting services. Further, the company is involved in asset management. The company was founded in 1965 and is headquartered in Chuo-ku, Japan.

How the Company Makes Money

NIPPON KANZAI Holdings Co., Ltd. generates revenue primarily through its diverse service offerings in building management and facility maintenance. The company earns money by providing contracted services such as cleaning, security, and facility management to commercial, residential, and public sector clients. Key revenue streams include long-term contracts for building operations, maintenance services, and specialized engineering solutions designed to enhance energy efficiency and sustainability. The company may also engage in strategic partnerships with real estate developers and institutional clients, contributing to its steady income from service agreements and project-based work.

NIPPON KANZAI Holdings Co., Ltd. Financial Statement Overview

Summary

NIPPON KANZAI Holdings Co., Ltd. demonstrates strong financial performance with robust revenue growth and a healthy net profit margin. The balance sheet is solid with low leverage and a strong equity position. However, recent challenges in cash flow conversion slightly temper the overall financial outlook.

Income Statement

NIPPON KANZAI Holdings Co., Ltd. shows strong revenue growth with a notable increase of 14.0% from 2024 to 2025, and a consistent rise in gross profit margin, reaching 27.5% in 2025. The company maintains a healthy net profit margin at approximately 4.2%, indicating effective cost management. EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio of 0.09 in 2025, underscoring conservative leverage practices. Stockholders' equity accounts for 66.2% of total assets, indicating a robust equity position. Return on Equity stands at 8.7%, which is satisfactory, although there is room for improvement in profitability.

Cash Flow

Cash flow analysis reveals a decrease in operating cash flow from 2024 to 2025, impacting free cash flow, which turned negative. The operating cash flow to net income ratio is low, suggesting challenges in converting income to cash. However, the company previously demonstrated strong free cash flow generation, indicating potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.54B	139.87B	122.67B	113.05B	103.74B	104.12B
Gross Profit	40.60B	39.59B	27.14B	24.09B	23.20B	22.36B
EBITDA	12.77B	11.41B	9.64B	9.58B	9.17B	9.14B
Net Income	7.34B	5.83B	5.68B	5.66B	6.18B	5.15B
Balance Sheet
Total Assets	96.57B	100.80B	92.64B	87.89B	82.14B	81.28B
Cash, Cash Equivalents and Short-Term Investments	32.05B	33.54B	31.39B	32.45B	32.86B	33.16B
Total Debt	6.14B	6.11B	1.75B	1.90B	2.97B	3.76B
Total Liabilities	26.27B	30.76B	23.49B	22.41B	20.49B	24.59B
Stockholders Equity	66.97B	66.69B	68.13B	64.34B	60.37B	55.41B
Cash Flow
Free Cash Flow	0.00	-243.00M	5.02B	7.01B	3.47B	6.87B
Operating Cash Flow	0.00	1.70B	5.47B	7.76B	4.46B	7.48B
Investing Cash Flow	0.00	1.80B	-2.92B	-4.68B	-1.84B	-17.00M
Financing Cash Flow	0.00	-2.04B	-3.34B	-3.55B	-3.07B	-3.05B

NIPPON KANZAI Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2761.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9347, the sentiment is Positive. The current price of 2761 is above the 20-day moving average (MA) of 2745.45, above the 50-day MA of 2691.04, and above the 200-day MA of 2699.27, indicating a bullish trend. The MACD of 15.56 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9347.

NIPPON KANZAI Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8877	79 Outperform	¥101.37B	11.12	―	3.12%	-6.27%	-11.07%
9347	73 Outperform	¥103.36B	13.94	―	1.95%	11.54%	50.62%
8934	73 Outperform	¥116.38B	6.21	17.98%	2.96%	84.20%	137.87%
8818	71 Outperform	¥88.83B	18.75	―	2.18%	4.72%	47.55%
2980	66 Neutral	¥55.17B	51.58	―	0.44%	-8.33%	-36.89%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	64 Neutral	¥78.99B	50.84	1.46%	1.18%	6.40%	230.12%